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Nasdaq confirms new directors for U.S. exchange boards

EditorAhmed Abdulazez Abdulkadir
Published 07/01/2024, 10:12 AM
NDAQ
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NEW YORK - Nasdaq, Inc. (NASDAQ:NDAQ) today announced the successful election of all its nominated directors to the boards of the U.S. exchanges it operates. The list of elected directors includes experienced professionals from various sectors, including finance, legal, and technology.

The elected directors will serve on the boards of The Nasdaq Stock Market LLC, Nasdaq PHLX LLC, Nasdaq BX, Inc., Nasdaq ISE, LLC, Nasdaq MRX, LLC, and Nasdaq GEMX, LLC. The new board members are Kathlyn Card Beckles, Michael J. Curran, Anne Marie Darling, David J. Frear, Kevin Kennedy, Thomas A. Kloet, Anita Lynch, David Rosato, Andrew J. Schultz, and Elizabeth Wideman. Their collective experience spans across major companies such as Verisk Analytics (NASDAQ:VRSK), Goldman Sachs, SiriusXM Holdings, TMX Group Limited, New Relic (NYSE:NEWR), Berkshire Bank, The Susquehanna International Group, and Comcast Corporation (NASDAQ:CMCSA).

Nasdaq is a global technology company that offers a variety of services, including trading, clearing, exchange technology, regulatory, securities listing, information, and public company services. The appointment of these directors is part of Nasdaq’s ongoing efforts to enhance governance and oversight across its platforms.

In other recent news, Nasdaq OMX Group Inc. has been the subject of various significant developments. Analysts at Morgan Stanley have maintained an Overweight rating on the company, predicting a 34% upside potential. This optimistic outlook is based on the company's ongoing business transformation, which is expected to drive high single-digit top-line growth. The firm also highlighted the expiration of the sponsor lock-up period for about 7% of shares, which could potentially lead to a clearing event, positively affecting the stock's performance.

Other firms like Barclays Capital and Keefe, Bruyette & Woods have also upgraded their ratings to "Overweight" and "Outperform" respectively, setting price targets between $69 and $80. Analysts are projecting double-digit EPS growth for Nasdaq, with estimates of $2.82 for FY1 and $3.18 for FY2.

However, Nasdaq is also under investigation by EU antitrust authorities regarding its acquisition of European Energy Exchange's (EEX) European power trading and clearing operations. The probe is centered on concerns of potential market dominance and increased prices due to product bundling.

In addition, Nasdaq has integrated a new artificial intelligence (AI) feature into its market surveillance technology, developed in collaboration with Amazon (NASDAQ:AMZN) Bedrock. This feature is expected to reduce investigation time by 33%. Lastly, Nasdaq is among the North American firms that have announced job cuts, although the extent of these reductions has not been specified.

InvestingPro Insights

As Nasdaq, Inc. (NASDAQ:NDAQ) strengthens its governance with the recent election of new directors, it's important to consider the company's financial health and market position. Nasdaq's dedication to enhancing global economic liquidity, transparency, and integrity is supported by strong financial metrics that reflect its strategic initiatives.

InvestingPro data shows Nasdaq's market capitalization stands at a robust $34.74 billion, indicating a significant presence in the market. Despite a slight revenue decline of 0.31% in the last twelve months as of Q1 2024, the company has seen a quarterly revenue growth of 9.2% in Q1 2024, suggesting a potential turnaround or seasonal strength in its business model. Additionally, Nasdaq's gross profit margin remains high at 66.04%, underscoring its ability to maintain profitability amidst various market conditions.

An InvestingPro Tip highlights Nasdaq's consistent track record of dividend growth, having raised its dividend for 12 consecutive years, which may be particularly attractive to income-focused investors. Moreover, the company has been profitable over the last twelve months, reinforcing its financial stability. For investors considering Nasdaq's stock, it's noteworthy that 13 analysts have revised their earnings expectations downwards for the upcoming period, which may warrant closer attention to upcoming earnings releases and management commentary.

For those looking to delve deeper into Nasdaq's financials and strategic outlook, InvestingPro offers a wealth of additional tips and insights. Readers can explore these by visiting https://www.investing.com/pro/NDAQ. To enhance your experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to an extended list of 9 additional InvestingPro Tips that could further inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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